Support 1: 23.79 Resistance 1: 24.70
Resistance 2: 26.16
United Overseas Bank bearish momentum has come to a halt with the latest break out on 3rd June 2019 with a piercing line candlestick pattern. This pattern was further confirmed by the strong bullish candle on 4th June 2019. The combination of the three candlestick formation further echoes the bullish sentiment of the stock.
Furthermore, the stochastic oscillators have shown signs of bearish exhaustion when the K and D line crosses in the oversold zone.
However, the bullish sentiment may be short-lived as the stock has shown a significant supply selling zone near 25.00, a crucial price level to determine the next long term market direction.
Should the stock breaks 25.00, we will see the next immediate target of 26.16.
*Should the stock break and closes below the support level 1 for two consecutive periods, the market sentiment will resume its bearish outlook.
Red dotted line = 200 period moving average
Blue dotted line = 50 period moving average
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